How the budget will impact the IT industry

Last year’s budget was rational and realistic for IT companies, and we hope that this year’s budget will continue in the same vein. In fact, programs such as Digital India, Start-Up India, Stand-Up India, Smart Cities and Skill India, etc.ETTelecom | Updated: February 27, 2016, 10:23 IST

Last year’s budget was rational and realistic for IT companies, and we hope that this year’s budget will continue in the same vein. In fact, programs such as Digital India, Start-Up India, Stand-Up India, Smart Cities and Skill India, etc. require the creation of technological infrastructure that will need budgetary support. We therefore expect the focus of this year’s budget to be on digital literacy, improved connectivity and access to technology supported by radical government process re-engineering, which will not only empower citizens but also enable start-ups and large organisations to experience digital transformation. If schemes launched last year like the IT based student financial aid scheme for animation and gaming along with the Innovation Promotion Platform to foster a culture of innovation, research and development are implemented this year, they will positively impact the Indian IT ecosystem.

R&D Benefits

This year’s budget should aggressively promote R&D benefits so that the organisations are encouraged to innovate and come up with newer technologies. Investment allowances for IT adoption must also be made to promote India as a premiere destination for both hardware and software development. We look forward to India becoming a centre of excellence for product development and design.

Make in India

With the government strongly positioning Make in India globally, the way forward now must be to make the process for investing in India more streamlined. Further clarity on the transfer pricing provisions introduced in the last budget would greatly help technology and IT companies plan better. Additional government support in the form of tax exemptions along with mobilising domestic investors by harmonising long-term capital gains would also be greatly useful in the same. With these changes, the Indian economy would get a substantial boost and be a big step for India in its movement towards a technologically developed nation.

Separately, RCom initiated contempt proceedings in the apex court against the Department of Telecommunications, blaming it for delaying a spectrum sale that would have enabled dues to be paid to Ericsson and lenders.